Financial Statement and Audit Services

We can prepare or supervise the preparation of your financial statements.
Compiled, reviewed, or audited statements can be provided according to
your needs.

More importantly, we can help you use these statements, as well as other
reports, to better manage your business and increase your profitability.

Good financial records are necessary for several reasons:

Daily operating decisions are based on financial reports.

Bank loans require reports of past performance.

Tax return numbers need proper substantiation.

Prepare financial reports monthly. For year-to-date comparisons and to make
quick management decisions, financial reports must be done monthly. "As
goes the month, so goes the year." You can compare the sales, gross profit,
and net profit at, say, the end of May, with prior years and get a good
idea of how the current year will finish. You can compare the total accounts
receivable or payables with prior years to spot problems and then quickly
take corrective action.

Here are some common business ratios you should monitor on a month-by-month
and a year-by-year basis:

Current Ratio - Current assets divided by current liabilities
will measure your ability to pay your current debts.

Debt to Equity Ratio ­ Total liabilities divided by net worth
will provide you with a year-to-year comparison of your ownership in
the company.

Receivables Outstanding ­ Receivables divided by average day's
sales will give you the number of days' sales on the books.

Profit Margin ­ Gross profit divided by net sales is one of
the most important numbers for you to monitor regularly.

You can learn more about directing your net profit!

If you would like to learn more about using financial statements to
make sound business decisions, we would be happy to assist you. No one
was born understanding financial information, but it is easier to learn
than most people think.

Please ask as many questions as you like; we will help you until you
are comfortable with business numbers and can use yours to increase your
profitability.